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1
Q

The precursor of all fire insurance forms.

A

New York Standard Fire Policy (1943)

2
Q

What were the three covered perils under the standard fire policy?

A

Fire, lightning, and removal

3
Q

When was coverage effective under the standard fire policy?

A

Noon Standard Sign

4
Q

What do dwelling fire policies cover?

A

Dwelling and personal property. (No liability)

5
Q

Do dwelling fire policies require the property to be owner-occupied?

A

No

6
Q

What are the 3 forms offered in the Dwelling ‘02 program?

A

1) Dwelling Property Basic Form (DP-00-01 aka DP1
2) Dwelling Property Broad Form (DO-00-02 aka DP2)
3) Dwelling Property Special Form (DP-00-03 aka DP3)

7
Q

Which properties are not eligible for DP policies?

A

Farms
Structures with more than 4 units
Any structure used for a commercial or business purpose

8
Q

What are the four coverages offered under a DP policy?

A
A dwelling
B other structures
C personal property
D rental value 
*** E additional living expenses is included in DP2 and DP3. Can be added to DP1 by endorsement.
9
Q

Are the four coverage parts in a DP policy included in a policy!

A

No. The insured may pick which coverages he or she desires.

10
Q

Which peril form is used in a DP1 policy?

A

Specified peril. (Fire, lightning, internal explosion)

11
Q

What does Coverage A cover on a DP1?

A

Dwelling principally used for residential purposes. Includes structures attached to the dwelling.

materials and supplies on or next to the location which are used to construct, alter, or repair the dwelling or other structures.

Anything used for servicing or maintenance of the described premises. (Lawn mower, range, fridge, storm doors, shutters, awnings)

12
Q

What does coverage B cover on a DP1 policy?

A

Loss to (appurtenant) structures set apart from the dwelling by a clear space. (Detached garage, pools, cabanas)

Structures connects by only a fence, utility line, etc.

13
Q

What is excluded on Coverage B of a DP1 policy?

A

Other structures used in whole or by part for commercial, manufacturing or farming purposes, or rented or held for rental to any person not a tenant of the dwelling, unless used solely as a private garage.

Land

Damage to grave markers or mausoleums.

14
Q

What is the maximum coverage that can be purchased for Coverage B on a DP1 policy?

A

10% of coverage A.

15
Q

What does Coverage C of a DP1 policy cover?

A

Personal property owned or used by a named insured or resident family member while on the Insureds premises. Only covered when premium is paid for this coverage.

10% of contents limit for property away from premises.

16
Q

What coverage is excluded under Coverage C of a DP1 policy?

A

Bills, currency, deeds, evidence of debt, credit cards, coins, bullion, gold, grave markers, manuscripts, money, passports, securities, silver, tickets, stamps, animals, birds, fish, aircraft, motor vehicles (except for those used to service property), watercraft (rowboats an canoes ARE covered), electronic data and discs, and credit card card or fund transfer cards

17
Q

When an insured has a DP1 and moves to a new residence, how long does coverage c extend?

A

At least 30 days after the insured begins to move property there. (Does not extend beyond policy termination date)

18
Q

What is covered by coverage D on a DP1?

A

FRV (fair rental value) minus expenses that do not continue (condo fee) when Property rented (held for rental) is uninhabitable.

19
Q

What is the maximum coverage available under Coverage D on a DP1 policy?

A

20% of coverage A. Sometimes more can be purchased.

20
Q

What coverages does a DP1 offer, outside of parts A-E?

A

Debris removal (in addition to limit A)

Improvements, alterations, additions. (If a tenant) 10% of C (contents) does not reduce limits on C

World- Wide coverage 10% of c. DOES reduce limit.

Reasonable repairs (to prevent further damage)

Property removed is covered for ANY CAUSE OF LOSS at any location due to a covered peril up to 5 days. Doesn’t reduce limit of liability that applies. Also covers property in transit

Fire department service charges. Up to $500 for a NEIGHBORING FD to respond. Doesn’t cover hometown.

21
Q

Which perils are covered by a DP1?

A

Fire
Lightning,
Internal (inside house) explosion(except bursting pipes, electrical arcing, explsions of steam boilers/pipes, rupture of pressure relief devices); other perils - extended coverages EC and vandalism can be added.

22
Q

What are the 8 extended coverage perils covered by a DP1?

A

Hail or windstorm, aircraft, riot, vehicle damage (others’ vehicle damaging your property), volcanic eruption, smoke, explosion (VWSHAVER)

23
Q

The insured purchased EC under a DP1 policy. Is smoke caused by a fire burning in the fireplace covered?

A

No. It must be due to a hostile fire.

24
Q

What does vandalism and malicious mischief cover?

A

Willful and malicious damage to or destruction of covered property. Does not cover glass breakage or loss by theft. The property can’t be vacant note than 60 days. A dwelling under construction is considered vacant.

25
Q

Which perils are not covered by a DP1 policy?

A

Earth movement, neglect,flood, sewer, or drain backup, sump overflow, war or nuclear hazards, theft, intentional destruction by the insured, damage from bursting pipes, loss due to ordinance and law, damage due to latent defect, rust, inherent vice, wear and tear or dry rot, or damage caused by insects, birds, or rodents.

26
Q

What kind of property is not covered by a DP1?

A

Motor vehicles (snowmobiles, atvs, golf carts)

Aircraft

Watercraft

Animals, birds, fish

Money

Trees shrubs plants

Fence

Patio

Pool

Pavement (caused by weight of ice, snow sleet - wind-driven, or not)

27
Q

How are property losses under a DP1 settled?

A

ACV

28
Q

What are the broad form perils? DP-02

A
BIGAFFECT
B-Burglary Damage
I-Ice and snow wenight
G-Glass breakage
A-Accidental discharge or overflow of water or steam
F-Falling objects
F-Freezing of pipes
E-Electrical damage
C-Collapse
T-Tearing apart, cracking, burning or bulging
29
Q

Which perils are covered by a DP-2 Form?

A

1)Fire
2) Lightning
3) V&MM
4) (EC) Coverages:
Windstorm (exclusions: awnings, signs, anttenas, rowboats, canoes)
Civil Commotion
Smoke (except agricultural smudging, industrial operation) 2002 form damage caused by puffback was included
Hail
Aircraft
Vehicles
Volcanic Eruption (one reruption = 72 hours … earthquake isn’t covered)
Explosion
Riot

5) Burglary Damage
6) Weight of Ice Snow or Sleet (except: awnings, fences, patios, pavement, pools, foundations, retaining walls, bulkheads, wharfs, docks, piers
7) Glass breakage (as long as not vacant for 60 days)
8) Accidental discharge (doesn’t cover repeated seepage, vacant 60 days)
9) Falling objects (excludes: antennas(and wiring), masts, towers, outdoor equipment, awning, and fences, damage to falling object)
10) freezing (reasonable care must be used to make sure heat maintained, water drained)
11) Electrical damage (artificially generated (except: tubes, transistors, similar electrical components)
12) Collapse caused by (Perils insured agains, hidden decay, hidden vermin/insect, weight of contents, weight of rain, defective materials when building. DOES NOT INCLUDE settling, cracking, shrinking, bulging, expansion of a building. Items not covered: awnings, patios/pools, pipes, flues, drains, septic, foundations, retaining wlals, docks
13) Tearing apart, cracking, burning, or bulging

30
Q

Which perils are covered under a DP-3 (special) form?

A

Open perils for real property (dwelling) except the exclusions
Named Perils for contents (Same perils as DP-2)

31
Q

What is excluded under open perils on a DP-3?

A
  1. Losses excluded by General exclusions
  2. Gradual and expected losses (wear & tear, inherent vice, smog, breakdown)
  3. Settling, cracking, shrinking, bulging, expansion of pavement, patios, foundations, walls, floors, roods, or ceilings
  4. Loss caused by birds vermin, rodents, insects, or domestic animals
  5. Wind, hail, ice, snow or sleet damage to antennas, lawns, plants, shrubs, trees.
  6. Freezing, thawing or damage caused by the weight of ice, snow or sleet to awnings, fences, pavements, patios, pools, foundations, retaining walls, bulkheads, piers, wharfs, and docks
  7. Theft of property not actually part of the dwelling nor to dwelling under construction
  8. V&MM, burgluryy damage and glass breakage if vacant for 60 days.
  9. Any loss involving collapse, except than as provided under “other coverages”;
  10. Discharge, dispersal, seepage, migration, release or escape of pollutants, meaning any solid, liquid, gaseous or thermal irritant or contaminant including, smoke, vapor, fumes, acides, alkalis, chemicals and waste
32
Q

How are losses valued on a DP-1?

A

All losses, property, contents are ACV

33
Q

Which DP forms include part E?

A

DP-2 & DP-3 (can add to 1)

34
Q

Which additional coverages does the DP-2 offer?

A

DP-1 coverage (with property removed covered for 30 days) plus

1) trees, shrubs, plants (5% of A / $500 per item / only covered by VVFLARE (vandalism, vehicles not owned by Insured, fire, lightning, aircraft, riot, explosion NOT windstorm / this part provides additional insurance)

35
Q

What types of losses are not covered by a DP-1?

A
Any cause of loss other than fire, lightning, v&mm, and extended coverages (if purchased) including: 
earth movement
power failure off premises
neglect
water damage (flood, swer or drain backup, sump pump overflow)
-war/nuclear hazards
-theft
-intentional destruction
-damage from bursting pipes
-ordinance/law
-latent defect
-rust
-inherent vice
-wear & tear
-dry rot
-infestations
-animal damage
36
Q

What type of property isn’t covered under a DP-1?

A
  • motor vehicles (except those used to maintain property)
  • aircraft
  • watercraft (except for canoes and rowboats)
  • animals, birds, fish
  • money
  • tress, shrubs, plants
  • fence
  • patio
  • swimming pool
  • pavement damage from weight of ice, snow or sleet
37
Q

What are the differences between DP-1 and DP-2?

A

DP-2 provides replacement cost coverage and makes Coverage E (Additional Living Expenses) available. The perils covered by DP-2 are broad form perils.Coverage for property removed is increased to 30 days.

38
Q

What is coverage E and what does it cover?

A

Additional living expenses (loss of use). Indemnifies for the expenses incurred in excess of regular living expenses if the dwelling is unfit or untenantable.

39
Q

How is the limit of coverage E determined?

A

Can select a limit up to 20% of coverage A.

40
Q

How many days is property removed covered for under each DP form?

A

1: 5 days
2: 30 days
3: 30 days

41
Q

What type of property is covered by the DP-2 form?

A

All property covered by DP-1 plus:
1) Trees, shrubs, plants: 5% of Part A / $500 per item / only covered by VVFLARE (vandalism, vehicles (not owned), fire, lightning, aircraft, riot, explosion

2) Collapse
due to a covered peril;
hidden decay;
hidden insect/vermin damage;
weight of contents, equipment, animals or people; weight of rain collecting on roof;
use of defective material or construction methods, or if collapses during construction

3) Glass or safety glazing material (except when vacant 60 consecutive days)
4) Ordinance or law (increased cost due to enforcement of ordinance that requires construction, demolition or repair of damaged part of building; demo or reconstruction of undamaged part of building; remodeling, removal, replacement of undamaged part of covered building (10% of A ) doesn’t cover: 1) loss in value due to ordinance 2) dealing with pollutants

42
Q

What is not included in the definition of collapse?

A

Settling, cracking, shrinking, bulging, or expansion of a structure.

43
Q

John moved out of his home and he is trying to find a tenant to rent his old home. His old home has been vacant for 30 days. A branch fell off a tree and broke an expensive piece of glass. Would it be covered?

A

Yes, because glass is covered for up to 60 days when a dwelling is vacant.

44
Q

What basis does the DP-2 value covered losses with?

A

Replacement cost with insurance to value clause.

45
Q

Which perils are covered under a DP-2?

A

All perils in DP-1 (fire, lightning, internal explosion, ec, v&mm)

Definition of vehicle damage is broadened (covg added for damage to any structure, including a fence

Covers damage from rain, sleet, snow, sand, dust ONLY IF force of wind or hail damages the building causing an opening in a roof or wall.

Weight of ice, snow, sleet (except fences, awnings, retaining walls, pools, patios, foundations)

Damage from burglars (but not theft and cannot be vacant for 60 days)

Falling objects (interior only covered if exterior damage is done to a structure) AND object not covered. Not covered: antennas, fences, awnings, outdoor equipment)

Accidental discharge or overflow (burst pipes) of water or steam from sprinkle system, heat, a/c, appliance. Damage to pipe not covered nor is repeated leakage

Tearing, cracking, bulging, burning of steam or hot water heating, ac, sprinkler

Freezing pipes if precautions taken

Loss from artificial electrical current surge

Volcanic eruption or action and earthquakes

46
Q

Which types are perils are covered under each part of a DP-3?

A

A & B: open perils / all risk (anything but excluded)
C: Broad form

Broadens definition of motor vehicle damage to include damage for driveways, sidewalks caused by a vehicle.

47
Q

Compare the DP-3 to DP-2

A

Identical except DP-3 is all risk for structures and damage by a vehicle to a sidewalk is covered.

48
Q

This clause state that if there is a Los to a pair, the insurer can 1) repair or replace part to restore pair to preloss value 2) pay difference between ACV before and after loss

A

Pair and set clause.

49
Q

This clause states that if someone has another policy for a property each insurer pays proportionate share.

A

Other insurance.

50
Q

What happens to a policy if you die?

A

The policy continues for a legal representative, temporary custodian, or other person.

51
Q

What does the assignment clause do?

A

The policy or interests cannot be transferred to another party without consent of the insurer.

52
Q

This clause states that if an insurer adopts new policy forms during the policy term which broaden coverage without an extra premium, the changes are automatically made part of the pool.

A

Liberalization clause.

53
Q

This provision or condition places upon the insurer states that the insured cannot abandon the property to the insurer following a loss. The insured must cooperate during the settlement process.

A

Abandonment clause.

54
Q

Suits against the insurer: No legal action can be brought against the insurer unless there has been ____ ____________ by an insured with all the terms and conditions of the policy and the legal action commences within ____ years of the date of loss.

A

Full compliance / 2

55
Q

What types of perils are excluded on a DP-3?

A

Ordinance and law, hazards, wear and tear, sump overflow, power failure, neglect, war, nuclear, intentional destruction,

56
Q

What types of property are excluded on a DP-3?

A

Bills, currency, accounts, cash, money, coins, deeds, debt evidence, animals, birds, fish, manuscripts, passports, tickets, stamps, motor vehicles, aircraft, watercraft, (except rowboats/canoes), some electronic data.

57
Q

Can theft coverage be added to provide coverage for on or off premises theft?

A

Yes. Minimum limit is $1k.

58
Q

What was marine insurance developed to provide coverage for?

A

Good or products being transported or carried from place to place.

59
Q

Which classes of property does the nationwide definition of marine insurance recognize?

A
  1. Imports
  2. Exports
  3. Domestic shipments
  4. Instrumentalities of transportation and communication (bridges, tunnels, pipelines, power lines, radio/tv equipment)
  5. Personal property risk floaters (inland marine)
60
Q

This type of policy covers certain classes of property on a schedule basis. It provides coverage on a all-risk basis (includes mysterious disappearance for 9 classes of property). Losses are settled on ACV. Worldwide coverage (except for fine arts which are covered in USA and Canada.

A

Personal articles floatet

61
Q

Which nine types of property are covered for mysterious disappearance under a paf?

A

1) jewelry
2) fur
3) cameras
4) golf equipment
5) fine arts
6) stamps
7) coins
8) musical instruments
9) silverware

62
Q

Would my boston whaler be covered under a paf?

A

No inboard and outboard coats aren’t covered.

63
Q

What type of property can be covered with state amount on a paf?

A

Paintings, sculptures

64
Q

Mike buys the Mona Lisa for $1,000 and tells the insurer 120 days after purchasing it, which is the day after it was stolen. How much is paid, assuming a $250 deductible?

A

$0. Coverage applied to newly acquired art only if told about it within 90 days. (And only if he already has art)

65
Q

What is a personal effects floater for?

A

Travelers

66
Q

What is a personal property floater?

A

Coverage C for someone without a residence. Property is not scheduled.

67
Q

This package policy provides property insurance for an insured’s boat and liability protection. It is used for small personal craft Losses; ACV. Covers liability for recreational activities such as waterskiing, parasailing, hang gliding by endorsement. Covers hull and unattached gear for boat:engine maintenance. Stuff covered by HO policy is excluded. Exclusions: intentional, liability assed under contract, business use.

A

Boatowners policy.

68
Q

A policy that provides package policy protection got larger pleasure boats, sailboats with an inboard or auxiliary power, and other forms of in inboard boats.

Property covers: nav equipment, fittings, and other equipment necessary for operation.

A

Yacht policy.

69
Q

What are two limitations that apply to yacht policies?

A

Navigational area, distance limitation ( coastal areas - miles from coast)

70
Q

What is not covered under earthquake coverage ?

A

Flood/tidal waves, damage to land

71
Q

How is an earthquake deductive set?

A

Percentage of coverage limit, not less than $250. (Applied separately to real and property losses)

72
Q

What is an occurrence under earthquake coverage?

A

72 hour period

73
Q

What are the coverages of a CPL policy?

A

1) personal liability (coverage E)
2) medical payment to others (Coverage F)
3) additional coverages (supplementary claim expense, first aid expenses, loss assessment , damage to the property of others. )

74
Q

What is the basic personal liability limit on a CPL policy?

A

$100k

75
Q

When is injury or property damaged covered while an insured is using a golf cart?

A

When on the remises or if in a game of golf on a golf course, if transporting a handicapped insured, or used in a gated community where they allow golf carts.

76
Q

Is BI and PD covered when a ATV, snowmobile or moped is being used on premises?

A

Yes.

77
Q

Where is an insured covered for medical payments to others?

A

On premises, away from premises if injury is not business related.

78
Q

Does medical payments to others apply to injuries sustained to insured, family members, and other residents?

A

No, except it does apply to domestic servants.

79
Q

What is the basic medical payments coverage limit?

A

$1000

80
Q

What is the statute of limitations for med pay coverage?

A

3 years

81
Q

Does medical payments coverage cover counseling services, psychological testing?

A

No.

82
Q

What is the pd limit on a CPL policy?

A

$1k

83
Q

Who is an insure on a CPL policy?

A

Named insured
Family or relatives living in household
Children even if at school
People under 21 who is in care of the insurer
People temporarily possessing insured’s animal or watercraft
Student in school full time who was resident before moving out . Must be under 24 and your relative OR 21 and in the care of another insured.

84
Q

What is an insured location?

A

1) residence
2) vacant land other than farm land by insured
3) cemetery plots
4) premises acquired during policy if not for business.
5) other place insured is temporarily residing.
6) premises insured is renting not used for business. (Hall rented for wedding)

85
Q

What is excluded on CPL?

A

1) property owned by insured
2) contractual Liability
3) med expense covered by workers comp
4) BI to insured
5) BI or PD due to business activities
6) BI from war
7) BI or PD from auto, aircraft, hovercraft
8) any property owned by or rented to an insured or rented to others by an insurer.
9) expected or intended injury (reasonable force is covered)
10) transmittable disease
11) injuries by sexual molestation or corporal punishment
12) injuries arising from selling, delivering, possessing controlled substance.

86
Q

What business use is ok under CPL ?

A

1) Under $2k in a year
2) volunteer
3) watching kids without being compensated other than expenses
4) home day care to a relative

87
Q

When does watercraft coverage apply under a CPL?

A

1) inboard outboard under 50 hp RENTED to an insured.
2) sailboats under 26 feet
3) owned outboard boats under 25
4) any boat (owned or unowned) while laid-up.

The book says any type of watercraft (regardless of size) borrowed is covered under CPL